Security boost for public sector construction clients

The UK’s largest register of pre-qualified contractors – Constructionline – has teamed up with leading business information firm, Experian, in order to improve buyer security.

The agreement, a key enhancement to Constructionline’s robust financial checking system, will provide an early warning sign when a contractor’s credit rating declines at a rapid rate or to critical levels.

Constructionline says the new service will give buyers increased visibility over their supply chain at a time when record numbers of contractors are falling into administration – up to nine a day according to a recent report by consultancy Pricewaterhouse Coopers.

Under its existing checking systems, Constructionline reviews a supplier’s audited accounts at the time of its financial year-end submission to Companies House rather than at the firm’s annual renewal date. This helps ensure that buyers have access to the most up-to-date information available.

The new enhancement will instantly alert Constructionline’s accounts team of a supplier’s declining credit rating and prompt an immediate forensic investigation of a firm’s finances.

Constructionline uses the audited account data of suppliers to calculate their financial capacity, allowing buyers to create tender lists that only contain contractors who have adequate resources to carry out a particular project.

In most cases, suppliers are able to submit their accounting details electronically without the need for further investigation. This latest deal with Experian will provide an additional strength to Constructionline’s buyer service.

Aoife Mantini, service development manager for Constructionline, said: “The turbulent economic conditions of the last 12 months have had a very fast and significant impact on some contractors.

“A supplier falling into administration during a project can have significant financial impact and create massive delays, so our new early warning system is a valuable extra tool for our buyers.”